USDX technical analysis for February 1, 2016

The US dollar index is showing triple-top divergence signals as prices has reached new higher highs and stochastic. Important trend support is found at 98.50 where we saw prices performing a big bounce last week.

Red lines indicating divergence are seen inside the range between 98.50 and 100, so a breakout above or below could start a considerable new trend. Short-term support is found at 99. A breakout will open the way to 98.50. Resistance is seen at 100.

Blue lines - megaphone top

Red lines - upward sloping wedge

On the weekly chart price is still above the Ichimoku cloud inside the red upward sloping wedge. A break below 98.50 will be a bearish signal as it would push the price towards the weekly cloud support near 96.40 at least. On the other hand, a break above 100 could cause a final push towards 101.50-102 where the megaphone trend-line upper boundary is found.

The material has been provided by InstaForex Company - www.instaforex.com